Quantile stochastic frontier models with endogeneity

Mike Tsionas, A. George Assaf and Athanasios Andrikopoulos

Economics Letters, 2020, vol. 188, issue C

Abstract: In this paper, we extend Jradi et al. (2019). First, we use the asymmetric Laplace distribution which is a more reasonable assumption in quantile models. Second, we address the issue of statistical inference for the optimal quantile. Finally, we allow for endogeneity in quantile stochastic frontier models. The new formulation is implemented in a Bayesian framework using Markov Chain Monte Carlo. We employ the celebrated Philippine rice data as in Jradi et al. (2019). Jradi et al. (2019) did not provide efficiency measures which, in our framework, is straightforward to do.

Keywords: Quantile estimation; Stochastic frontier models; Efficiency; Bayesian analysis; Markov chain Monte Carlo (search for similar items in EconPapers)
JEL-codes: C11 C13 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:188:y:2020:i:c:s0165176520300136

DOI: 10.1016/j.econlet.2020.108964

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